Synchrony extends credit program with American Eagle

STAMFORD, Conn. - Synchrony (NYSE: SYF), a prominent consumer financial services company, has announced the continuation of its long-standing relationship with American Eagle Outfitters, Inc. (NYSE: AEO). The multi-year extension will allow Synchrony to manage the credit programs for the global specialty retailer, including the Real Rewards credit card. According to InvestingPro data, AEO maintains a strong financial health score and has consistently paid dividends for 22 consecutive years, demonstrating its commitment to shareholder value.

The Real Rewards card, which offers rewards and special discounts, can be used at American Eagle and Aerie stores as well as online. Additionally, the Real Rewards Visa credit card is accepted wherever Visa cards are used. This collaboration aims to provide a seamless financing experience for customers and enhance their shopping experience with American Eagle and Aerie. With a healthy current ratio of 1.53 and strong liquidity position, AEO appears well-positioned to support its retail operations and credit programs.

Darrell Owens, Executive Vice President and CEO of Lifestyle at Synchrony, emphasized the shared commitment to customer satisfaction and innovation that underpins the partnership with AEO. The Real Rewards program has been acknowledged by Newsweek as one of America’s Best Loyalty Programs for five years running, and the Real Rewards Credit Card was named Money’s Best Retail Credit Card for In-Store Rewards in 2025.

Synchrony, with nearly a century of experience, offers a range of credit and banking products designed to support healthier financial lives. It has been recognized as the second Best Company to Work For in the United States by Fortune magazine and Great Place to Work.

American Eagle Outfitters, Inc. operates a diverse portfolio of apparel brands and runs stores across the United States, Canada, and Mexico, with its merchandise also available internationally through licensing partners. The company also maintains a significant e-commerce presence.

This extension of the credit program partnership is expected to continue to benefit customers of both Synchrony and American Eagle by providing accessible credit options and rewarding shopping experiences. The information for this article is based on a press release statement.

In other recent news, American Eagle Outfitters announced a $200 million Accelerated Share Repurchase program in collaboration with Bank of America, N.A. This initiative involves the repurchase of approximately 18.1 million shares, representing about 9.5% of the company’s outstanding stock, and underscores the company’s strong capital position and strategic growth confidence. In their fourth-quarter earnings report, American Eagle reported earnings of $0.54 per share, surpassing consensus estimates, although this was a decrease from $0.61 in the same period last year. Revenue for the quarter was $1.61 billion, slightly above analyst expectations.

Analyst firms have reacted to these developments with CFRA reducing American Eagle’s price target to $17, maintaining a Buy rating, while BMO Capital Markets lowered their target to $15, keeping a Market Perform rating. Both firms cited the challenging macroeconomic environment and operational headwinds as reasons for their cautious outlook. Additionally, American Eagle’s board member Stephanie Pugliese resigned to take on a CEO role at another company, leaving a vacancy yet to be filled. These recent developments reflect the company’s ongoing strategic maneuvers and the broader retail industry’s current dynamics.

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